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U.S. Pay Czar to Rework Contracts Deemed High

By

Deborah Solomon

Updated July 27, 2009 11:59 p.m. ET

WASHINGTON -- The U.S. pay czar, now preparing to vet the compensation at businesses receiving major federal aid, will push to renegotiate contracts that he views as excessive or seek other ways to reduce overall outlays, said people familiar with the matter.

The role of the government in setting pay is reaching a pivotal moment. Seven banks and industrial companies that received significant bailouts must submit proposals for their compensation packages by Aug. 13.: Citigroup Inc., Bank of America Corp., American...